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Oil H4(4 Hours) Chart Analysis – Strong Support Zone, Downtrend Line Breakout, ADX Indicator
Looking at the H4 chart, we could see that the price which was moving higher, has broken above the most recent downtrend line and is currently holding above it, we may consider this as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, currently there are no signs opposing this short-term bullish view. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
Oil H1(1 Hour) Chart Analysis – Higher Highs, Two Strong Support Zones
On the H1 chart, the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Also there are no signs opposing this short term bullish view at the moment. In addition to this, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below (marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
Oil H4(4 Hours) Chart Analysis
- Strong Support Zone, Downtrend Line Breakout, ADX Indicator
Oil H1(1 Hour) Chart Analysis
- Higher Highs, Two Strong Support Zones
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Arvinth Akash
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